EOS Accounts Increasingly Hacked, 400K EOS Stolen

Not only is the EOS platform losing market cap value, but it also appears that it does not yet have much value to offer to users. There have been an increasing number of (what it seems like) phantom EOS accounts being created and a large number of hacking incidents as well.

EOS, NEO, Tron, etc are some of the many other dApp platforms that have been heavily promoted as “Ethereum Killers.” With a mainnet that struggled to, but finally went live in June this year, EOS was supposed to be a revolutionary public blockchain-based platform to facilitate the development, hosting, and execution of smart contract-enabled dApps.

However, it now seems that despite attracting billions of dollars in investments, while also managing to build an active worldwide community of developers,  there has not yet been any meaningful development work being done on EOS. Meaningful development would mean producing things that people actually find useful and want to use.

Seemingly Impressive Numbers, But No Product

Looking at the numbers shows that almost 200 dApps were launched on the EOS blockchain in the last 5 months, and over 500K new users created accounts on the platform. Moreover, the EOS network recorded some impressive volumes (in terms of number of transactions). It is doing about 600 million transactions, but what value are those TXs giving to users, if any, is the real question.

Lots Of Gaming, Gambling dApps

As is the case with a similar platform (Tron), there have been a relatively large number of gaming and gambling apps launched on EOS. According to 8btc, EOS-based dApps recorded a trading volume of $1 million in late August, which is more than the roughly $360,000 worth of trading volume for dApps that Ethereum registered during the same period.

In the relatively short six months since EOS was launched, the daily number of active users on EOS is about 9x that of Ethereum. EOS’ peak transaction volume is also about 10x that of Ethereum (on a daily basis).

Only 33% Of EOS Accounts Are Active

While there are 571,000 accounts on the EOS blockchain, cybersecurity firm  Peckshield found that nearly 120,000 of these accounts are controlled by groups of users, and over 200,000 accounts (33%) have been dormant.

Commenting on the activity on EOS’ dApps,  Shi Huaguo, the senior security officer at the the research firm, noted:

“DApps on EOS started to explode since the end of September, and the number grew rapidly in October. But with EOS, dApps [are] getting hotter [or more popular], [but then] the group-controlled accounts [have] started to emerge since October 4th.”

While it may be difficult to pinpoint who these account holders are, Shi seems to think these accounts may have been created by crypto bounty hunters and ‘click farms’. Further, Shi’s team of researchers noted that these accounts are not contributing to the healthy growth and development of dApps on EOS.

Security Issues With 27 dApps, Loss Of 400,000 EOS Tokens

While daily active EOS users is far greater than that of Ethereum, there have been an alarming number of hacks of EOS related accounts. Peckshiled’s research team has also discovered at least 27 different EOS dApps that have serious security issues (as of Nov 26 2018).

Due to the security vulnerabilities, over 400,000 EOS tokens have been stolen, an amount equivalent to about $740,000 at press time (according to CoinMarketCap data).

Guo Yonggang, a Chinese security researcher, said the vast majority of these attacks are seemingly related to several different vulnerabilities, which have nothing to do with the blockchain itself. He suspects there may have been (and are) many cyberattack groups actively looking for and maliciously exploiting vulnerabilities “behind the scenes.”

This, Yonggang said, suggests more such attacks are likely to happen, and his research team thinks the attack vectors might become more sophisticated as well.